Again, the government takes a big decision regarding the PAN card. Most of the financial companies keep the details of their customers to themselves, and this includes details like Aadhaar and PAN cards. Although these companies claim that they have not been used in an unauthorized manner, there have been many cases in which these details have been used. In such a situation, the government is very aware of this and can take action against these companies.
Government gave these instructions
The government has planned a major crackdown on the unauthorized use of PAN details. The Indian Cyber Crime Coordination Center (I4C), working under the Union Home Ministry, has given some instructions to financial technology companies and other consumer technology firms for this. The government has said that these companies cannot use the Permanent Account Number (PAN) details of Indian citizens in an unauthorized manner.
The government has implemented the Digital Personal Data Protection Act, 2023 (DPDP) and initiated strict action against unauthorized handling of personal data by technology companies.
What do companies do?
A top executive of a fintech firm told the media that it was known as a ‘pan enrichment’ service. It will help loan distribution companies create profiles of their customers based on their PAN number for cross-selling of credit and other financial products.
He further said that sometimes this data is also used by customers for cross-checking the details given in their application. However, due to the new rules of the government, there has been a change in this service.
Action on misuse of PAN card
It has been reported in the media report that many firms have accessed the personal information of customers, such as their full name, address, and phone number, using their PAN number from the backend system of the Income Tax Department. Also, the connection of PAN number with consumer credit score makes it essential data. While this is not a data breach, it points to unauthorized access to the back-end infrastructure of the income tax department.
